Mobile application usage has become an important part of daily life with the spread of wireless data networks and the rising processing power of mobile devices. These and other factors have allowed mobile application developers to create travel applications, personal organizers, video games, and other mobile applications that deliver the full informational capabilities of the Internet to broad segments of mobile users. Developers have also created mobile applications that seek to creatively engage users based on the highly-accessible user-interfaces of many mobile devices. The resulting revolution in mobile applications has provided mobile device users with powerful informational capabilities and unique interactive experiences.
Developers of mobile applications have conventionally employed two common monetization models. One common monetization model has involved selling mobile applications over the Internet or a mobile application marketplace. The sale requires a mobile user to pay a one-time fee for use or purchase a subscription that activates the mobile application for a period of time. Another common monetization model has involved selling advertisements that are integrated into a mobile application. Under an advertisement-based monetization model, a developer negotiates advertisements with third-party advertisers and strategically places content into the user-interface of the mobile application. Both monetization models have provided developers with the potential to generate revenue.
However, existing monetization models have not proven effective. For instance, users have traditionally resisted purchasing an application under a sales-based monetization model. More specifically, many have resisted providing financial information required to pay for an application under a sales-based monetization model. People have gravitated toward free applications, even those of inferior quality, over applications that they have to pay for. Users have typically found advertisement-based monetization models to be annoying and to detract from a mobile application's ability to engage them. As a result, existing mobile application monetization models do not adequately allow developers to monetize the sales of mobile applications.